• 2018 November 2 16:52

    BIMCO to discuss the 2020 Transitional Fuel Clause on November 13

    BIMCO reports that its 2020 Bunker Clause working group is pushing hard to finish work on two key clauses addressing the global switch to 0.5% sulphur content fuel on 1 January 2020.

    The “2020 Global Marine Fuel Sulphur Content Clause”, which is a general compliance provision, will be put forward for adoption by BIMCO’s Documentary Committee on 13 November. The drafting team has also prepared a first draft of a clause dealing with the transition to 0.5% sulphur content – the “2020 Transitional Fuel Clause”.

    The 2020 Transitional Fuel Clause will be discussed by BIMCO’s Documentary Committee on 13 November.

    “The feedback provided by the Committee will be used to further refine the clause immediately afterwards. Furthermore, the sub-committee will ask the Documentary Committee to fast track the clause with the aim to issue the 2020 Global Marine Fuel Sulphur Content Clause and the 2020 Transitional Fuel Clause together as a package,” says BIMCO’s Head of Contracts and Clauses, Grant Hunter.

    At the core of the 2020 Global Marine Fuel Sulphur Content Clause is an obligation on owners and charterers to comply with the sulphur content requirements of MARPOL Annex VI. Fuels supplied by the charterers have to meet not only the MARPOL Annex VI requirements, but also the specifications and grades set out in the charter party. Importantly, the charterers must also use bunker suppliers and barge operators who will comply with MARPOL requirements throughout the supply chain.

    Owner and charter cooperation is essential
    The 2020 Transitional Fuel Clause recognises that owners and time charterers will have to cooperate in the run up to 1 January 2020 to manage fuel supplies to minimise the amount of non-compliant fuel on board the ship on the coming in to force date. Any non-compliant fuel on board belonging to the charterers after 1 January 2020 will need to be discharged from the ship and disposed of at charterers’ risk, time and cost latest by the 1 March 2020 carriage ban date, or by the redelivery date – whichever comes first. It will be the owners’ responsibility to clean empty fuel tanks to prepare them to receive 0.5% sulphur content fuel.

    The clause emphasises the need for cooperation in planning and preparation to ensure a smooth as possible transition to the new low sulphur fuel.

    A requirement to segregate fuels of different grades is a common provision in most time charter parties. However, there are concerns that new 0.5% sulphur content fuel may have compatibility issues even between stems produced by the same oil company. To minimise the risk of incompatibility between stems of 0.5% sulphur fuel, the clause requires each supply of fuel to be kept separate – even if it is of the same grade and specification.

    Diverse team ensures a broad perspective
    The drafting team met in London on Monday 29 October and were joined by representatives from INTERTANKO.

    “We recognise the importance of trying to work together to produce clauses that both organisations can stand behind. We also believe that a diverse team is very important to ensure a broad perspective on all issues,” says Hunter.

    The team is drawn from a wide spectrum of interests and includes owners, charterers, fuel suppliers, P&I Clubs and lawyers. The team is Peter Eckhardt, F Laeisz, Germany (Chairman); Nicola Ioannou, Ocean Fleet, Greece; Dimitrios Los, Vontrados, Greece; Daniel Chu, Navig8, UK; Ann Shazell, Cargill Ocean Transportation, Switzerland; Rob Crees, World Fuel Services, UK; Tiejha Smyth, NEPIA, UK, Paul Dean/Alessio Sbraga, HFW, UK. INTERTANKO was represented by Michele White, general counsel, and Claire Georgeson, Commercial and Markets Manager. Technical guidance is provided by Lars Robert Pedersen, Deputy Secretary General for maritime technology and regulation at BIMCO.




2020 January 29

18:07 Korean Register publishes technical information on ammonia as an alternative marine fuel
17:35 Port of Baku handled record number of containers and wheeled vehicles in 2019
17:27 WinGD advances clean fuel research with flexible injector concept
17:10 Global Shipping Body (ICS) issues guidance to shipowners in the face of the Corona Virus
15:17 KTK-Bunker supports 7th International Forum of Dredging Companies as its Sponsor
14:34 Sredne-Nevsky Shipyard launches yet another minesweeper Project 12700
14:03 Van Oord starts cooperation on Estonian offshore wind development
13:15 Wärtsilä to supply world’s first hybrid powered self-discharging bulk carriers
12:38 FESCO delivered four gantry cranes from St. Petersburg to Primorye along NSR for Global Ports
12:05 Inmarsat and ITC Global to expand connectivity options for Energy, Maritime and Yachting
11:42 Yury Borisov to supervise shipbuilding development, Marat Khusnullin - transport programmes
11:19 Andrey Belousov to coordinate activities of Transport Ministry and ad hoc Federal Agencies
11:00 Second phase of Novosibirsk Shipping Gateway's reconstruction complete
10:48 DCSA establishes Track and Trace standards for the global container shipping industry
10:36 First multipurpose dry cargo carrier of Project RSD59 laid down for Astrol
10:13 Onezhsky shipyard launches workboat with hybrid propulsion system
09:51 Bunker prices go down at the port of Saint-Petersburg, Russia (graph)
09:49 MABUX: Bunker market this morning, Jan 29
09:32 Brent Crude futures price is up 1.26% to $59.55, Light Sweet Crude – up 1.22% to $54.13
09:14 Baltic Dry Index is down to 539 points

2020 January 28

18:05 Cheniere Energy celebrates 1000th LNG cargo milestone
17:40 NYK establishes first exclusive RORO terminal in Egypt
17:30 Global Ports Holding’s JV buys remaining shares of Malaga Cruise Port concession
15:43 Severnaya Verf starts cutting metal for fifth processing trawler of Project 170701 ordered by NOREBO Group
15:02 Hyundai's Engine Machinery Division announces the completion of the first shop test for the first of six ME-GI engines for container ships for Eastern Pacific Shipping
14:38 Metal Shark delivers patrol boat to Puerto Rico customer
14:16 Bunker prices are stable at the Far East ports of Russia following the recent growth (graph)
14:02 CMA CGM has announced FAK rates from Middle East Gulf and Pakistan to North Europe and the Mediterranean
13:27 Cheniere Energy celebrates 1000th LNG cargo milestone
13:02 Diversification of Poland’s natural gas supply sources and directions is progressing
12:35 Vostochnaya Stevedoring Company starts shipping trains to Elektrougli of Moscow Railways
12:01 Carisbrooke takes D.I.Y approach to BWT compliance with Optimarin for huge savings, efficiency and on-schedule operations
12:00 IMO and WISTA to promote greater diversity in the maritime sector
11:41 New video highlights benefits of working with IMO
11:19 Damen develops new concept vessel – the Offshore Support Vessel (OSV) 9020
11:07 Rainmaking partners maritime giants with tech startups to energise innovation
10:39 Tallink and Silja Line to establish annual summer cruise to Saint-Petersburg
10:16 Ships of RF Navy's Baltic Fleet assisted the crew of a foreign yacht in the Gulf of Aden
10:02 MABUX: Bunker market this morning, Jan 28
09:54 Dredging and Hydraulic Engineering Structures Congress will feature engineering ships buyers subordinate to Rosmorrechflot
09:33 Brent Crude futures price is down 0.41% to $58.34, Light Sweet Crude – down 0.28% to $52.99
09:18 Baltic Dry Index is down to 546 points

2020 January 27

18:07 Port of Oostende, DEME Concessions and PMV announce exclusive partnership for green hydrogen plant in Ostend
17:35 Fincantieri announces the launching ceremony of the "Emilio Bianchi" frigate
17:19 Semco Maritime wins rig order for Seadrill
17:02 Baltic Workboats’ PILOT 15 WP wins Small Pilot Boat Award for 2019
16:39 Port of King’s Lynn seals new deal with leading recycling specialist
15:57 Two main engines loaded onto lead chemical carrier of Project 00216М named PortNews
15:04 Seaspan closes purchase of a fleet of six containerships
14:48 Average wholesale prices for М-100 HFO up to RUB 10,737 in RF spot market
14:24 Royal Navy to present exclusive updates on NavyX at Unmanned Maritime Systems Technology 2020
14:01 High Speed Transfers takes delivery of fourth Damen Fast Crew Supplier 2710 in 18 months
13:35 Northern Fleet detachment leaves Mediterranean sea
13:13 Baltic Fleet guard ship Yaroslav Mudryi calls at the port of Oman
12:51 Klaipėda Port remains an important centre-line of the national economics
12:26 Largest ports of Latvia change their focus and intend to make investments to improve their competitiveness
11:10 Vladivostok Sea Fishing Port handled 4.59 million tonnes of cargo in 2019, up 1.5% Y-o-Y
09:59 Victor Golomolzin takes the helm of Oktyabrskaya Railway
09:37 Brent Crude futures price is down 3.41% to $58.62, Light Sweet Crude – down 2.29% to $52.95
09:37 MABUX: Bunker market this morning, Jan 27